Market Buzz: Holiday jitters ahead of Greek deal

Trading on Russian markets is expected to be nervous on Wednesday ahead of upcoming decision on Greece’s crucial debt swap scheduled for Thursday.

­“As the final decision on the Greek issue is expected on March 8, which is a public holiday in Russia, investors will brace themselves to hold their positions,” says Kirill Markin. “Participants are wary of negative outcomes, because they won’t be able to secure themselves from the consequences as Russian trades resume on March 11.”

The Russian stock market had a bad day on Tuesday amid a negative backdrop and investors’ new concerns on Greece. The MICEX dropped 3.91%, while the RTS lost 4.35%. Energy company OGK-5 was among few improvers, rising 0.48%, supported by positive annual accounts.

European stock markets closed in the red Tuesday with French banks and resource shares among major decliners amid a gloomy outlook for global growth. Investors were also pressured by the upcoming decision on Greece’s issue on Thursday.

The Stoxx Europe 600 index closed 2.7% lower, showing the biggest drop since November. The French CAC 40 lost 3.6% as French banks showed very poor results during Tuesday’s session. The German DAX 30 fell 3.4%.

A fear of a probable Greek default also pressured US stocks on Tuesday with the Dow Jones lost 1.6% showing the worst result since December. While the S&P 500 declined 1.5% and Nasdaq Composite shed 1.4%.